Your IV formula does not consider historical PE values. It also does not consider the reproduction value to cash flow of their R & D. Compare FCF and normalized earnings and come up with an earnings figure. Divide that number by the (WACC-Terminal Growth Factor). Only use TGF if the business has real franchise value. Then add excess cash. Divide by the #shares outstanding. Then choose a margin of safety that fits your appetite for risk (25%-50%).

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